Raise Calculator

The raise calculator shows what a salary increase is worth after tax in Canada. Enter your current salary, the raise and your province to see how much more you will take home after federal tax, provincial tax, CPP and EI. Below it: why you keep less than the gross raise, and what people commonly do with the extra pay. If you haven’t had the raise yet, how to ask for a raise covers the conversation, and the rest of your rights at work are in the workplace rights and employee benefits guide.

How this raise calculator works

Enter your current salary, choose the raise type (a percentage, a flat dollar amount or a new salary), pick your province and your pay frequency. The calculator compares your pay before and after the raise, including federal tax, provincial tax, CPP, EI and net take-home pay.

Understanding the tax impact of a raise

A raise is taxed at your marginal rate: the combined federal and provincial rate on the top slice of your income, which is higher than your average rate. A raise that moves part of your income into a higher bracket is taxed at the higher rate only on the part above the threshold, never on your whole salary.

Federal tax brackets (2026)

Source: Canada Revenue Agency – Canadian income tax rates for individuals, 2026. View source. Verified September 5, 2026.

Provincial brackets add to these, and the combined rate for your income is on the marginal tax rate calculator.

CPP and EI ceilings matter

CPP and EI are charged only up to yearly earnings ceilings, so a raise above them keeps more:

Below the first CPP ceiling, a raise pays the full CPP rate; between the two ceilings it pays only the CPP2 rate; above the second ceiling, and above the EI ceiling, it pays neither. That is why the share of a raise you keep can go up as income rises, even though the tax rate does not go down. How the two CPP tiers work is on CPP contribution rates, and EI premiums on EI contribution rates.

Benefits that shrink as income rises

Some benefits are reduced as family income goes up, which adds to the effective cost of a raise for families who receive them. The Canada Child Benefit is the one most families getting a raise will notice; others, such as the Canada Workers Benefit, phase out at lower incomes. The calculator above doesn’t include benefit reductions.

What to do with your raise

The time just after a raise is when the extra pay is easiest to direct, before spending adjusts to the new income. Common steps:

1. Decide where the money goes before the first bigger paycheque. Raising an automatic transfer in the same pay period as the raise means the new money never sits in your spending account.
2. Pick an order for savings and debt. A common order is high-interest debt first (paying off a credit card earns the card’s interest rate), then registered accounts: the FHSA for first-time buyers, the RRSP, whose deduction also lowers the tax on the raise, the TFSA, and an RESP for children’s education. How to rank debts is covered on debt avalanche vs snowball.
3. Raise your automatic contributions. A group RRSP contribution is changed through payroll; personal RRSP, TFSA and RESP contributions through each account’s pre-authorized contribution. If your employer matches RRSP contributions, a higher salary can raise the match too (see how employer RRSP matching works; the match is taxed as covered on tax on an employer RRSP match).
4. Check your TD1 if your situation calls for it. Payroll adjusts withholding automatically when your salary changes, but a second job, a new dependant or a large expected withdrawal can call for a new TD1 (see the TD1 form).
5. Revisit debt payments. Higher payments on a car loan, line of credit or mortgage reduce the interest paid over time; paying off a mortgage early covers prepayment limits.
6. Update your emergency fund target. An emergency fund is usually sized on months of expenses, so if your spending rises with the raise, the target rises too (see how much to keep in an emergency fund).
7. Plan the lifestyle part. Splitting the after-tax raise between savings and spending, such as half and half or a 50/30/20 budget, or setting the new savings first and spending the rest (pay yourself first), keeps the increase in spending deliberate.

Related calculators

• Salary Calculator: your full take-home pay
• Income Tax Calculator: federal and provincial tax in detail
• Overtime Calculator: overtime earnings for a week
• RRSP Calculator: the tax saving from contributing part of your raise
• Withholding Tax Calculator: deductions per paycheque